The number of owner-occupied home loans dropped by 6.1% in March, following a downwardly revised fall of 6.8% in February. This was much lower than the market consensus for a decline of 0.8% and brings the annual rate down to –8.4%.

The value of investment loans also came in weak, falling by 7.2% in March after a sharp fall of 8.9% in February.

The trend in housing finance now highlights a clear deterioration since the mid 2007 peak.